UK - Trustees have three months to adopt key principles in the Myners Report before the Treasury "takes stock" of non-compliance.
The Treasury’s head of capital markets and governance, David Lawton, told the National Association of Pension Funds investment conference there were five key areas where schemes were failing.
- Ensuring trustees have sufficient expertise to carry out their duties.- Shareholder activism.- Transparency.- Assessing the performance of trustees and their investment consultants.- Clarifying investment time horizons.
Lawton said the Treasury would be holding a series of meetings with industry representatives on these issues and once these had been concluded, it would “take stock” of the situation in late spring before deciding what action was required.
Before that occurs, the Treasury wants to see further progress, particularly on schemes broadening their sources of investment advice, shareholder activism and an increase in the amount of resources they devote to asset allocation.
Lawton also revealed the Treasury would review how schemes and fund managers were complying with the Institutional Shareholders Committee’s activism best practice guidelines.
Lawton said: “Investment consultants are improving in many aspects, but schemes base their contracts on trust rather than their formal abilities. Overall, progress has been made but it is far from complete. There are further efforts to be made.”
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